Program · Federal

Canadian Controlled Private Corporation (CCPC)

Private corporation resident in Canada, controlled by Canadian residents. Gets the Small Business Deduction on first ~$500K of active business income. Primary tax benefit of incorporation.

Reviewed by Ben Stevenson, Managing Editor, Canadian Money Help Updated April 21, 2026 Methodology

Eligibility

Canadian resident corporation
Not controlled by non-residents or public corporations
Active business income (passive investment income treated differently)

Limits and rules

Small Business Deduction limit: $500,000 federal (reduced for large CCPCs with passive income)
Combined federal + provincial tax on active business income under SBD: roughly 9-15% depending on province
Investment income in CCPC taxed at top rate (~50%) with partial refund on dividend payout
Setup cost: $200-$800 online or $1,500-$3,000 through a lawyer
Annual compliance: $1,000-$3,000

Source

CRA: Canadian-controlled private corporation →